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Spend More Time with Better Prospects

Want to change your funding/sales RESULTS?

Spend more time.
With better prospects.

Full attribution to Brian Tracy, one the world’s best sales trainers.

These 3 + 3 simple words could have a huge impact on your results… IF you ACT on them.

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Master Prospect List – QPI Rating System

We have used the MPL tool to run hundreds of campaigns and major gifts initiatives. It’s simple and powerful. Rate your top prospects to create a Master Prospect List in descending order of importance. Then focus all your time (literally) on your top ten prospects — you will be amazed by the results.

Download the excel file.

Each prospect receives a rating in each category 1-5 (5 being the highest). The sum weighted total of ratings in each of the five categories will give you the Qualified Prospect Index – You need to visit with anyone 90 and higher today!

Definition of Key Terms

Relationship Manager (RM)

This is the person within your organization that manages the relationship — does not have to be the point of contact but must responsible for thinking about this prospect every day.

Natural Partner

This is a person, internal or external to your organization that has the closest relationship to the prospect.

Capacity
Weight: 7

This number is the prospect’s capacity to make a major gift – a gift level that is worthy of one-on-one time with a prospect. This is not an indication of what you think the prospect WILL invest in your organization – it is an indication of what you think the prospect COULD give.

For example:
5 – $1MM
4 – $100K
3 – $10K
2 – $1K
1 – Unknown

Relationship
Weight: 6

This is an indication of the prospect’s relationship to your organization or to your cause. If this prospect is on your board it should be a five (5). If, for example, you are the American Cancer Society, and this prospect is a cancer survivor, the rating should be a five (5) even with no gift history.

For example:
5 – Specific interest in our organization or cause
4 – Heavily invested in our cause or within a sector or geography in which we operate

Timing
Weight: 3

Generally timing is always a five (5) unless you have specific knowledge otherwise.

Gift History
Weight: 2

What is this prospect’s giving history to your organization? You might determine that a five (5) on the rating scale indicates lifetime giving of $100,000+ or ten consecutive years in your Leadership Society. Below is an example using higher numbers.

5 – Has given multiple lifetime gifts and/or has given $1M lifetime
4 – Has given one or multiple gifts and/or has given $100k lifetime
3 – Has given one or multiple gifts and/or has given $10k lifetime
2 – Has given 1 lifetime gift and/or has given $1k liftetime
1 – Has never given and/or has given less than $1k lifetime

Philanthropy (or Gut Feeling)
Weight: 2

This is a measure of the prospect’s general willingness to give. Has he or she supported other organizations? Is it a foundation (5)? Do we have a good feeling about them? Give it a 5! This is also where I take into account the person who reaches out to us first or has said, “I want to help.” or “I want to do something big, can we talk?” Give that a 5 as well.
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Where Do We Find NEW Prospects?

In our work with thousands of organizations, staff and volunteers, this is the most FREQUENTLY ASKED (BIG, BIG, BIG) QUESTION:

“WHERE DO WE FIND NEW PROSPECTS?”

MY ANSWER: THIS IS THE WRONG QUESTION!!!

It’s not about ‘NEW’ PROSPECTS, it’s about the BEST PROSPECTS!

Why look for ‘New’ Prospects when you haven’t MAXIMIZED RELATIONSHIPS with your BEST and most QUALIFIED PROSPECTS!

FUNDING YOUR VISION is usually about your TOP 33 INVESTORS and perhaps your BEST 300 QUALIFIED PROSPECTS. Many of these top prospects are most likely sitting right in front of you… right now! (Not literally, but pretty darn close.)

The reason many of you are looking for ‘NEW’ prospects is because you believe:

“Our Old Prospects are tired of giving.”

“We have gone to the well too many times.”

“We can’t go back to our best prospects for more money.”

“We are taking advantage of our current relationship with our top prospects.”

To this, I would add 3 other thoughts coming from your current top givers that I also believe are very fair:

“I want you to get other people involved besides me.”

“I want you to broaden the base of support.”

“I don’t want to be the only one funding this organization or this project.”

While ‘expanding your base’ and ‘bringing in new relationships’ is important to your organization, it’s not the ‘ANSWER’ to your funding challenges!!!

I’d like to challenge your thinking with this idea: LOOK IN YOUR OWN BACKYARD!

Stop ‘searching the world’ for new prospects/ fresh money. Before you figure out how to get to Bill Gates or Warren Buffet or the Walton’s…look to your own CHAMPIONS who have the strongest interest in your Cause and your Case.

Here are 3 stories to reinforce this idea of ‘YOUR OWN BACKYARD’.

Russell H. Conwell wrote one of the most powerful and motivational classics of all time, Acres of Diamonds, published in 1921. Conwell actually gave his speech entitled “ACRES OF DIAMONDS” more than 5,000 times and earned enough in this effort to help found Temple University!
Here are summarized versions of 3 STORIES in the book that I hope will have a huge IMPACT on your thinking about ‘NEW’ PROSPECTS.

GOLD. In 1847, a man who owned a ranch in Northern California heard that gold had been discovered somewhere in Southern California. He sold his ranch to a Colonel Sutter, and then went south to search for gold and riches, never to return.

Colonel Sutter put a mill on that stream. One day, he discovered flakes of gold in the spill off. Sutter’s discovery, in 1849, started the CALIFORNIA GOLD RUSH!

DIAMONDS. An old Persian farmer was desperate for riches. He sold his farm, collected his money, left his family and went off in into the garden to drink. As the camel put his nose in the shallow water of the garden brook, the new owner saw a flash of brilliance and reached in and pulled out a diamond (in the rough). This discovery became the famous diamond mine of GOLCONDA!

OIL. In Pennsylvania, another farmer sold his farm to take a job with his cousin, who was looking for coal oil in Canada. He, too, was searching for wealth… in other places.
According to the county records, the farmer sold his farm for $833.

The new owner found oil… on that same farm. That oil was eventually worth hundreds of millions of dollars, and this discovery became the PENNSYLVANIA OIL FIELDS!

I hope the moral in all of these stories are clear and evident.

Read more On Prospects in our For Impact Guidebook, Gold Diamonds and Oil.

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BIG IDEA: The Master Prospect List (MPL)

The Master Prospect List is one of the biggest ideas in our sales process. It’s a system of:

  • Rating and ranking,
  • Your best and most Qualified Prospects,
  • In descending order of importance.

PRIORITIZATION is the centerpiece of our prospect system: the MPL is not a random group of names nor an alphabetical list!

The MPL ranks ALL of your prospects, not just ‘individuals’.

Rarely, do we see an organization with a TRUE Master Prospect List. This can be a tough concept for some to implement so we’ve made it simple:

  • MASTER = ONE LIST. Not ‘one list for the gala’ and ‘one list for annual fund’ and ‘one list for corporate partnerships.’ And, certainly not fifteen reports from Razor’s Edge.
  • Most Important Prospects. If you receive half your funding from the government then the government is ALWAYS your most important prospect.
  • RANKED. Not Alphabetical. Not by giving history. Not by Relationship Manager. RANKED BY IMPORTANCE.
  • Re: Individuals, Corporations, Foundations – a gift received yesterday does not remove the ranking of the relationship.
  • Smaller organizations should focus on their top 33 prospects. Larger organizations (e.g. Colleges) should maintain the same focus but take the ranking out to 100+ prospects.

In addition, The Master Prospect List:

  • Streamlines prospecting meetings and reporting and allows you to focus your time and energy.
  • Determines what to ask for by matching your prospect list to your funding plan.
  • Saves a lot of time in meetings, thinking, planning, strategy, etc. because the list IS the framework for all these things.
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97/3: Focus on the Top

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is: Finalize your MASTER PROSPECT LIST.

97% of all your INCOME (SALES/REVENUE) will come from

3% of your PROSPECTS (Portfolio/Community/Family).

This is a fact. Don’t fight it. Deal with it.

97/3 just reinforces the need to find your BEST and most QUALIFIED prospects!

The whole ‘80/20’, Pareto the Italian Economist thing is soooooo 1980. (Actually, it was in the 18-somethings.)

A quick parable/metaphor to reinforce this concept.

Lions, Mice, and Antelope.
A lion can hunt, capture, kill, and eat a field mouse. But the ENERGY expended is greater than the caloric content of the mouse. If a lion spent her whole day hunting and eating field mice, she would slowly starve to death!

A lion cannot live on mice. Lions need antelope. Antelope are BIG. Antelope take more planning, persistence, speed, and strength to capture and kill. But, once killed, they provide a huge feast for a lion and her pride.

A lion can live a long and happy life on a diet of antelope. She will die ‘chasing mice.’

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The Presentation Framework

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is: Create a simple, powerful PRESENTATION and ENGAGEMENT TOOL.

The are three key components to a great presentation: Engagement, Discovery and Authenticity.

1. ENGAGEMENT

Our goal on the visit is to get people ENGAGED – in a dialogue – about them, about you, and about the opportunity you both have to save, change, and impact lives.

2. DISCOVERY

Asking questions is the best way to do DISCOVERY. It is the best way to create ENGAGEMENT and an absolutely marvelous way to be able to PRESENT THE OPPORTUNITY!

Here are 3 quick tips on how to be a great listener:

  • Focus. Actually sit up, and engage with your eyes and ears as you focus on exactly what the prospect is saying.
  • Get people to tell their story. This is even better than you sharing the story about impact. Let them tell you why they find meaning in your impact or organization. Nothing you say can trump their ‘WHY.’
  • Take notes. In my mind, this is a great way to show respect, show that you’re listening, and show that you care. The best thing about notes for me is that it helps me focus on listening, and then when the prospect is finished I can refer back to the notes and quotes.

    *It’s also a great way to capture as much of the visit as you can for the Memo for the Record, which, of course, you are going to complete as soon after the call as possible.

For even more, read the article 8 More Steps to Positive Listening Skills!

Then… ASK… LISTEN… ASK… LISTEN.


3. AUTHENTICITY

We like to tell our Boot Camp attendees, “If you’re authentic, you can’t screw it (the visit, the conversation, the ask) up!”

AUTHENTICITY means being REAL. HONEST. CANDID. SINCERE!

The people you’re with know right away whether you’re ‘selling snake oil’ or SINCERELY PRESENTING AN OPPORTUNITY that has VALUE to both the GIVER and the RECEIVER!

I read 30 years ago (in Denis Waitley’s Seeds of Greatness) that the word SINCERE means “without wax” (in Latin, sine = without, cera = wax.) Ancient sculptors would ‘fix’ any flaws or mistakes that they made in the marble by filling in the mistake with wax.

You can only be you. So go without the wax!

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On Altitude: For Visits and Presentations

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is: Create a simple, powerful PRESENTATION and ENGAGEMENT TOOL.

Here is a deeper explanation of the power of ALTITUDE in designing a presentation or on a visit:

  • Get ‘buy-in’ at the highest level. As you make the Case for Support, the prospect or potential investor needs to understand and acknowledge their acceptance of the VISION and PRIORITIES. Sometimes this is a “You had me at hello” moment. Other times, it may take the entire first visit to get them to understand and agree that this is an important CAUSE and CASE. Regardless, it doesn’t make any sense to talk about PRIORITIES or the PLAN or HOW THEY CAN HELP if they don’t ‘get it’ at the highest level!
  • No Dissent on Descent. There should be no ‘dissent’ on the descent! Think of this as the opposite of getting the ‘bends’. If a diver ascends too quickly, they get a case of the bends. It’s painful and many times life-threatening. During a presentation, the prospect can get the ‘reverse-bends’ if you descend too rapidly, “Hello. Thanks for seeing me. Here’s our campaign. Can you give $100,000?”
  • Always go (back) up. When in doubt ALWAYS GO BACK UP TO 30,000’! The Vision, The Message, The Purpose.
  • ‘Permission to Proceed.’ We have actually incorporated this specific terminology into every presentation. “It seems like you’re fully engaged with both our Mission and our Message. Would it be okay (permission to proceed) to go deeper and talk about our Strategic Priorities and our Plan to make all this happen?”
  • Altitude is not always top-down or hierarchical. You can ‘enter’ at any level. You can focus on any level. You can travel up and down and even side to side when you’re using an Engagement Tool.

 

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The Power of Engagement Tools

Part of our For Impact story has been the invention of THE ENGAGEMENT TOOL. This one-page presentation flow, at altitude, has become an absolutely indispensable part of our client and coaching success.

THE WHY

IF you’re out making VISITS and PRESENTING THE OPPORTUNITY (which all of you
should be) – you need a SIMPLE, POWERFUL, ENGAGING PRESENTATION TOOL!!!

I can almost guarantee you don’t have one now because an Engagement Tool is not a PowerPoint, Campaign Brochure, 3-Ring Binder, or stuff from “National’s Marketing Department.”

An Engagement Tool is used to Present the Opportunity ‘shoulder-to-shoulder’.

As Tim Allen of Tool Time fame says, “The RIGHT TOOL for the RIGHT JOB.”

GREAT PRESENTATION TOOLS can:

Create a terrific FRAMEWORK for the FLOW of the VISIT,

GRAB PEOPLE’S ATTENTION,

FACILITATE important DIALOGUE,

Create ENGAGEMENT and INTERACTION,

COMMUNICATE STATS & STORIES, LOGIC & MAGIC, and much more!

THE WHAT

We organize our PRESENTATION TOOLS around “these 3 things”:

A NAPKIN

A FLOW SHEET

An ALTITUDE MAP

You can download an EXAMPLE of each one of these here.

THE HOW

Download / view the For Impact engagement tool.

See also: Guidebook – On Engagement | Guidebook – On Visual Engagement

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“Bankers Don’t Have Any Imagination, None At All”

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is: Create a simple, powerful PRESENTATION and ENGAGEMENT TOOL.

In September of 1953, Walt Disney was sending his brother Roy to meet with bankers in New York. Roy was going to be seeking financing for a new concept: Disneyland. At the time, Disney had cartoons but no theme parks, which is hard to imagine in the present day.

As the story is told, Walt called in an imagineer named Herb Ryman and said, “You know bankers don’t have any imagination, none at all. You have to show them what you’re going to do.” He then asked Herb to help him create a mock-up of Disneyland on a large storyboard. It was a splendid painting that even included black light paint so that you could see what Disneyland would look like at night.

This story comes from Walt Disney Imagineering: A Behind-the-Dreams Look at Making the Magic Real. The book includes pictures of the storyboard.

 

 

Part of our For Impact story has been the invention of THE ENGAGEMENT TOOL. This one-page presentation flow, at altitude, has become an absolutely indispensable part of our client and coaching success.

Always look for ways to SHOW what you’re going to do. Use Engagement Tools. Banker or not, there is a big difference between talking your way through something and showing your way through something. A Engagement Tool worked for Walt and Roy Disney and it will work for you.

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What is an Engagement Tool?

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is: Create a simple, powerful PRESENTATION and ENGAGEMENT TOOL. 

Most organizations and sales teams don’t have ENGAGEMENT tools. They have brochures, binders, or pitch decks. What are you using to DRIVE engagement on a visit?

Is is simple? Visual? Does it SUPPORT the conversation or constrict the conversation?

In a later video we will show you ways to use an engagement tool.

Download / view the For Impact engagement tool.
See also: Guidebook – On Engagement | Guidebook – On Visual Engagement

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R.O.I.

RETURN-ON-INVESTMENT.

What every ‘Investor’ wants from their investment and what every For Impact organization should want from its development/advancement/fundraising effort.

I feel this concept is completely absent or totally misunderstood from our sector – Something I want to help change.

With all due respect to the industry, I just don’t get it. An organization invests money and resources in their development/fundraising operation – could be a one-person shop or 50 people in the college advancement division. I’m not sure how else you would measure productivity or success without making ROI the #1 barometer.

ROI is very simple to calculate. It’s a numerator/denominator math problem:

  • Here’s how much money we Raised (the numerator).
  • Here’s how much money we spent/Total Expenses (denominator).
R – TE = NET, NET, NET CHECK/FUNDS to support IMPACT!

In the For Impact approach, the development function ‘write checks’ to the IMPACT.

R ÷ TE = ROI and COST OF FUNDRAISING.

For example, if you are a hospital foundation raising $2M a year in ‘fundraising Revenue and your total expenses are $1M then your ROI is 2X or 100%; and your cost of fundraising is 50%.

There are two ways to increase your ROI and decrease your cost of fundraising:

  • Increase the Numerator (Revenue)
  • Decrease the Denominator (Expenses)

In our For Impact world, our own benchmarks are as follows:

  • 3X is minimum model/benchmark.
  • 4X is great.
  • 5X is something you should be very proud of.

If you’re running a Campaign within an existing development operation or as a separate initiative, I believe the cost of fundraising should be a nickel (five cents on the dollar.) That would give you a 20X ROI.

If you are a For Impact leader, senior staff, executive director or a board member, I hope the above gives you some sense of comparison.

Note: One last example of why ROI is a completely different level of thinking than simply “This is how much money we raised this year.”

I can guarantee a small not-for-profit organization an additional $100,000 this year. Hire two ‘major gifts officers’ at $50,000 apiece. Send them to For Impact Boot Camp. I guarantee that they can go out and raise $100,000 in the next year (combined.)

Same thing would be true with a larger organization at $1M. Hire five major gift officers at $200,000 each. I’m fairly confident if they followed any sales process they would each be able to raise $200,000 in the next year for a total of $1M.

Ok, I think you get the point.

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Everything’s a Math Problem

Looking back, I know that almost every successful campaign that we have run in the last 33+ years (500+ Campaigns) was successful because we:

  • Kept in SIMPLE.
  • Had Clear Goals, Numbers and ‘Math.’
  • Measured our Progress, Daily!

For example:

  • How much MONEY (Income) do we need? And over what period of time?
  • How many QUALIFIED PROSPECTS do we need to generate?
  • What does our FUNDING PYRAMID (Gift Chart, 97/3) look like?
  • How many COMMITMENTS do we need to make this happen?
  • How many VISITS do we need to make in a week? A month?
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